STRATEGIC PLANS AND COMPANY POLICIES

 

         A company doesn’t live closed in a shell, but actively interacts with its environment. A company and its environment change constantly and continually. These changes influence favourably or unfavourably company’s vitality and its ability to survive today and tomorrow. If a company has lost the primary reflex to adapt and develop, it faces its death or, at the best, it is doomed to a poor existence.

         The history of mankind proves that the only way for survival is to develop and improve without a halt or a pause.

          Every company has many problems to deal with. They arise out of its need to react appropriately to all kinds of changes in the environment and in itself.

         There are two types of problems – big and small. The big problem is the one that affects company’s vitality. If it is not solved out, it will threaten company’s existence. As a rule, there are only few big problems, all the rest are secondary.

         Every company has various resources – material, human, etc. Some of the resources are more active and efficient than others.

          A Company’s development strategy comprises of a set of rules and activities through which its best resources are focused on solving the vital problems.

          This strategy may be decomposed to so-called “particular strategies” – market, product, technical, organisational, personnel and so on.

         Strategic planning applies special methodology tools that result to the formation of a strategic plan – the one needed for the company development strategy realisation.

          The strategies are decomposed to “policies” for the different functions and activities (R&D policy, investment policy, financial policy, marketing policy, HR policy and so on). Every policy consists of a set of essential principles and general rules that express the executive management team vision on developing company functions. It promotes common interpretation and correct performance of the relevant function.

          Consultations on strategic planning and company policies are a direct assistance to senior management